Corporations already decide what's illegal, largely, thanks to deficient systems. That revolving door exists. It's wide. The fact about law makers was worth mentioning because it often escapes people: pointing to a law, rather than thinking critically about the ethics of a law, is circular reasoning.

Answering your question isn't simple. I foremost think about how the lawmaking process itself could be changed to make it significantly harder to create superficial laws: the type of laws that interfere with consenting people; the type of laws largely responsible for so many prison economies and victimless "crimes." This doesn't answer your question. This is to say that it's a good question and it should be thought about.

Has already led to worse results, when you take into account corporate lobbying and regulatory capture.

Why don't we let citizens decide? Companies produce a product and if consumers don't want to use it, they don't. Uber irrefutably makes a city easier to navigate, and in most cities far cheaper. They've only succeeded in some cities by launching irrespective of what laws and modified to fit them, imagine if they responded and subsequently shut down when they received a cease and desist from SF in 2011 (prior to UberX launch). How ridiculous is it that they needed to let consumers (which the laws are supposed to help) experience the service 'illegally' for it to become accepted by those whom are supposed to be acting in their best interest.